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- Purpose– This study evaluates the impact of government social protection interventions on households’ welfare in South Africa. Design/methodology/approach– The study uses survey data comprising 393 observations and the multinomial logistic regression technique to analyse the effect of government interventions on households’ welfare. For robustness purposes, a negative binomial regression model is also estimated whose results corroborate the main results from the multinomial regression model. Findings– The study’s findings show that government economic interventions through social protection significantly reduce the likelihood of a decrease in household income or consumption. COVID-19 grant/social relief of distress grant, unemployment insurance, tax relief and job protection and creation are all significant in sustaining household income and consumption. Practical implications– The findings have policy implications for social development. Specifically, the findings support the use of government social protection as a safety net for low-income groups in South Africa. Originality/value–Thestudypresentspreliminaryevidenceontheeffectivenessofseveralmeasuresusedto ameliorate the COVID-19-induced recession within the South African context.
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- This paper aims to provide a critical review of the proposed National Health Insurance Bill in South Africa with reference to the finance mechanisms and implications within the development context. This starts with a brief analysis of health coverage, looking at the international and local context and describes the development benefits of the NHI. The paper reviews the funding mechanisms with particular reference to the tax incidence of the different types of taxes that could be used to raise funds for the NHI. Fiscal policy implications of the proposed health care provision changes are also discussed, and the proposed NHI Fund evaluated, focusing on the impact on the achievement of a performance-based budgeting system. The paper concludes that the increase of income and consumption-based taxes could result in loss of welfare to society, as labour is discouraged from working and the poor are further disadvantaged through increases in taxes such as value added tax.
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